De Beers is piloting a new blockchain-based system to monitor sales that might help eliminate conflict diamonds from circulation.
The South African gem giant is using the technology behind the cryptocurrency boom to create a virtual ledger of diamond sales.
Conflict diamonds are classified as those being used as to generate funds for war, terrorism or to fund a rogue state.
Tracking them has been notoriously difficult but De Beers believe if the pilot is successful it may have found a way of establishing the provenance of a diamond without compromising the industry.
Through the scheme, De Beers will be able to show a record of all transactions from the mine to the retailer but crucially be able to keep secret the identity of the parties involved and the value of any transaction.
This would establish that a diamond realm not synthetic, and has come from a bonafide mine.
While only a pilot at this stage, Bruce Cleaver, De Beers’ chief executive, said the miner would look at how to roll the scheme out across the sector.
In particular, this would involve how to track a cut and polished stone back to its original rough source which Cleaver admitted was one of the hurdles the scheme has yet to surmount.
De Beers is part of mining conglomerate Anglo American PLC (LON:AAL).